Edward Jones, a good way of becoming an IFA?

Aegis

Scottie1 wrote: »

And your knowledge of Edward Jones being a tough employer is based on what?

On the turnover rate of the entire workforce. When you consider that the partners and the head office staff probably have a lower turnover rate than the quoted 24%, that means the turnover rate of the salesforce is probably somewhere in the region of 30-35% per year.

Put simply, the odds of a single salesman lasting more than 2 years is somewhere between 58% (quoted figure) and 42% (high-end estimate for the salesforce). To me, a company where your odds of having a job in 2 years are about 50/50 is a tough employer!

dunstonh

The targets are really low initially, but the support is really high.

Edward Jones is effectively a salesforce. Salesforces are the spawn of evil in financial services. When you have people whose career is based on hitting targets then you have the risk of bias taking place. Doesnt matter what status of adviser they are. If the current RDR proposals remain unchanged then Edward Jones will not be able to use the term adviser or give financial advice. They will be insurance agents selling products.

With over half of new financial advisers failing within two years (usually in debt), going to any employer with a financial liability attached to your pay is a big risk. Edward Jones is probably better placed to take on existing tied agents who enjoy the sales environment but want a bit more freedom and respect than they get working for a bank. Not a raw recruit with no client bank or experience.

Scottie1_2

Aegis wrote: »

To me, a company where your odds of having a job in 2 years are about 50/50 is a tough employer!

I agree that the turnover, especially in the first two years is high, but the reality is that the turnover in the first 2 months is VERY high, as they pay you to train, and if you don't pass your exams after a certain amount of times then you're out of a job. I think that's pretty fair considering they are paying you to study.
Most people, and i know this from experience, leave rather than get fired, usually because the business model isn't right for them personally.
There's a lot more than meets the eye :-)

Scottie1_2

dunstonh wrote: »

When you have people whose career is based on hitting targets then you have the risk of bias taking place.

When you have an IFA 'advising' someone to invest all their money into CIBs and WP funds I question where the bias is, and why they are really 'advising'. We all know they pay best and it seems a little strange to me that the only holdings a lot of people have with so called 'I'FAs is a bunch of Insurance Bonds!
There are great IFAs out there as well as there are great other advisers. All of them are trying to make a living and unfortunately there are bad eggs in both camps.

On another note, I'd be interested in knowing how many initial 'start-up' IFAs who open their own businesses still trade after 2yrs? I'd expect it would be quite low as is the trend across the board with start-ups.

dunstonh

hen you have an IFA 'advising' someone to invest all their money into CIBs and WP funds I question where the bias is,

If you pay by fee or CAR then you have no bias. Whilst potential for bias exists on commission option with any type of adviser, you reduce the chances of it with an IFA. It wont matter after RDR comes into effect as all IFAs will be fee based or work to CAR. In which case no bias will be able to occur as product providers wont be setting the remuneration and under current proposals IFAs will be the only advisers with the rest being classed as salesmen.

it seems a little strange to me that the only holdings a lot of people have with so called 'I'FAs is a bunch of Insurance Bonds!

Historically they were the cheapest and main options. Increasingly not the case nowadays but many of these have been held a long time.

On another note, I'd be interested in knowing how many initial 'start-up' IFAs who open their own businesses still trade after 2yrs? I'd expect it would be quite low as is the trend across the board with start-ups.

Most IFAs have done time as tied agent or sales rep so the ratio of failures will be lower but some will still fail. Going straight to IFA without any experience is risky and you increase your odds of failure. Spending too long as a tied agent and getting used to lower standards and brainwashing that the salesforces dish out also reduces your odds of success.

jock08

Hi

I've been reading this thread with interest. I am a recently ex employee of Edward Jones. I'm afraid you've drastically underestimated the attrition rate. I'd put it at nearer 70%.

The question I've got is this: myself and a number of other ex employees are keen to find a way to tell the truth about our experience with Edward Jones Ltd as a warning to others. They spin quite a yarn to get you in, what with sending you out details of how high their position is in the FT top 100 list etc etc etc and all of this guff about how it is not a target driven sales environment and that you set your own targets, have your own autonomy etc etc etc. You genuinely believe by the time you have gone through what is a very thourough recruitment process that you have found an amazing opportunity with a fantastic company which is going to leave you made for life. The reality is very different indeed. they forget to mention they sack you for failing exams. If these are the rules, then fair enough, but you find out about them on day one of your employment, not during the recruitment process. In my own case, I was sacked for absolutely no reason at all! They provided me with one and it simply was incorrect. I don't want to give away too many specifics here. I'll just say that you want to try to explain that to the next employer! In short, they promise the earth to get you in, but forget to mention that in getting on board, you are in fact putting yourself in a very precarious position, as the odds of being sacked and sacked quickly are astonishingly high. Of my own group, 30% remain, and about half of those are very unhappy indeed. They do not permit people to see that they are taking an enormous gamble by joining Jones, as they are excellent salespeople, who do a fantastic job of dressing mutton up as lamb. This is even right down to the inspirational tearjerker about the Jones IFA who helped Granpa Joe and Granny Mary find a way to put the heating on in their house again due to his excellent financial planning, having doorstepped them to find them sitting under blankets in a room lit by candles. Yes, Jones is a lovely company and the role of the IFA is to help poverty stricken pensioners. Yes, they really do say this!

Does anyone know of a good way that we can put the word out on them? They are undertaking a very aggressive recruitment strategy, and fair play to them, but people really do need to be aware of the gamble they are taking when they go to work for this company. It is potentially a life ruiner. In fairness, over the longer term, after much hard work and hardship, there probably is a very good opportunity with them, but there is a far greater chance that you'll find yourself on the dole with good qualifications, just not enough of them to get you the job you are after. The initial training stops with CF4. You need CF5 to get Competent AdvisOr Status, which is what most employers are after, as well as about two years experience. I know that Jones will not be happy, but I cannot see what they can do if people are telling the truth. They are less than honest in their attempts to recruit. People need to have all of the facts to make that decision properly for themselves. I'd love some advice here!

Aegis

jock08 wrote: »

Hi

I've been reading this thread with interest. I am a recently ex employee of Edward Jones. I'm afraid you've drastically underestimated the attrition rate. I'd put it at nearer 70%.

The question I've got is this: myself and a number of other ex employees are keen to find a way to tell the truth about our experience with Edward Jones Ltd as a warning to others. They spin quite a yarn to get you in, what with sending you out details of how high their position is in the FT top 100 list etc etc etc and all of this guff about how it is not a target driven sales environment and that you set your own targets, have your own autonomy etc etc etc. You genuinely believe by the time you have gone through what is a very thourough recruitment process that you have found an amazing opportunity with a fantastic company which is going to leave you made for life. The reality is very different indeed. they forget to mention they sack you for failing exams. If these are the rules, then fair enough, but you find out about them on day one of your employment, not during the recruitment process. In my own case, I was sacked for absolutely no reason at all! They provided me with one and it simply was incorrect. I don't want to give away too many specifics here. I'll just say that you want to try to explain that to the next employer! In short, they promise the earth to get you in, but forget to mention that in getting on board, you are in fact putting yourself in a very precarious position, as the odds of being sacked and sacked quickly are astonishingly high. Of my own group, 30% remain, and about half of those are very unhappy indeed. They do not permit people to see that they are taking an enormous gamble by joining Jones, as they are excellent salespeople, who do a fantastic job of dressing mutton up as lamb. This is even right down to the inspirational tearjerker about the Jones IFA who helped Granpa Joe and Granny Mary find a way to put the heating on in their house again due to his excellent financial planning, having doorstepped them to find them sitting under blankets in a room lit by candles. Yes, Jones is a lovely company and the role of the IFA is to help poverty stricken pensioners. Yes, they really do say this!

Does anyone know of a good way that we can put the word out on them? They are undertaking a very aggressive recruitment strategy, and fair play to them, but people really do need to be aware of the gamble they are taking when they go to work for this company. It is potentially a life ruiner. In fairness, over the longer term, after much hard work and hardship, there probably is a very good opportunity with them, but there is a far greater chance that you'll find yourself on the dole with good qualifications, just not enough of them to get you the job you are after. The initial training stops with CF4. You need CF5 to get Competent AdvisOr Status, which is what most employers are after, as well as about two years experience. I know that Jones will not be happy, but I cannot see what they can do if people are telling the truth. They are less than honest in their attempts to recruit. People need to have all of the facts to make that decision properly for themselves. I'd love some advice here!

Sounds like you're better out than in!

Try working for a bank for a while, then branching out to the independent advice route.

IPP-Believer

I wonder if there is any chance of the Government taking over a few IFA firms. I would be quite willing to give up my big bonus this year for a large cash injection.

Its a hard industry to get into as the training is expensive. I would suggest the banks may be a good option for learning but they still want a target to be hit.

Think about a sales support job at an IFA, you can learn about the business and worry about meeting customers later.

dunstonh

I wonder if there is any chance of the Government taking over a few IFA firms.

Maybe when they have us paying for the FSCS loans in a couple of years time we will need it.

Its a hard industry to get into as the training is expensive. I would suggest the banks may be a good option for learning but they still want a target to be hit.

Banks are the natural training ground nowadays. It is a bit like doing time though.

IPP-Believer

Its my first year in my own business and to be honest I if they want IFA's to foot too big a proportion of the FSCS it will be my last.

I have picked a bad enough year as it is without helping to bail out the banks.